The ETH/USD pair drops 26% from its historic high, as the entire market crashed when Bitcoin erased $5000 from its value in a matter of moments so let’s read more in today’s Ethereum news.
The second-biggest cryptocurrency hit a record high of $2041 during the weekend session which prompted the daytraders to secure their profits. This eventually led to a larger sell-off over the weekend and Monday session which took the ETH/USD exchange rate lower by 26.11 percent to $1508. In other places on the market, every high-cap asset suffered a huge loss as well.
Bitcoin which is the leading cryptocurrency had a high positive correlation with Ethereum and dropped to 19.99 percent from its session peak above $58K while Binance Coin closed the previous weekly session at 171 percent high but then dropped 44 percent on Monday. The entire market wiped $149 billion off its value a day ago.
Bulls were able to offer support as ETH continued dropping into the Monday session so it seems that they capped the crypto from falling lower on its 50-day simple moving average. The ETH/USD pair drops shortly before pulling itself back upwards by 13 percent. In the meantime, the bounce-back attempt took the pair to another support wave which is called the 20-day exponential moving average. Here, both curves limited the ETH downside corrections in the past and the traders even tried to break it nine times. However, each attempt took the pair rates higher and any slipover below the 20-EMA had bulls treat the 50-day SMA as well as support.
In the meantime, Teddy Cleps, who is an independent market analyst noted that the rates could hit a new high if it maintains support above the cloud price floor. ETH is getting squeezed between the $2000 and the cloud as per Cleps:
“[The] same exact price action that we had a few weeks back, when price was getting squeezed between the cloud and the 2017 all time high. Have patience, $5,000 is coming.”
As reported recently, Etheruem’s price climbed higher and surpassed the $2000 resistnace against the US dollar with the price trading nicely above $1850 and the 100 simple moving average. There’s a key bullish trend line forming near $1860 on the 4-hour charts of the pair that could most likely continue higher above $1980 and $2000 levels.
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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